Logistics Lowdown - June 2017

We give you the skinny in the big bad world of logistics. Read this curated collection of articles every month to learn about the latest developments and most pressing problems facing our fast-changing industry

1. E-COMMERCE UPRISING!

When the digitized market moves, the industry is never too far behind. Every click, swipe, touch, and double tap is shaking what we once knew in the online retail sector.3-PL logistics hastily adjuststo the fast pace of business entering the online retail sector by maximizingproductivity in e-commerceworld-wide. With the constant gratification ordering online creates, there isnew expectancy and immediacy of 24 to 48 hour delivery.The industry is making the necessary adjustments in a few ways:down-sizing the pick-pack as well as the ship process to single items in small volumes, sophisticating software enginesthat will integrateinformation cross functionally, and emphasizing consumer transaction and behavior data as a gauge of customer service efficiency. These internal changes in infrastructure aspire to uphold the "direct to consumer" methodology to continue to provide excellent service.

2. IS E-COMMERCE THE ANSWER FOR ALL?

Despite its immense growth and large impact in the navigation of sales and productivity, some e-commerce disruptors remind us that it is not the only way to build a business. We see more change in direction from web retailers to storefronts to gain larger audiences that online strategies put limitations on. These deals suggest that for some fields, the e-commerce is still only a fish in a pond of opportunity to leverage store sales. Companies such as Harry's Inc, a razor subscription service, have recently struck deals with Target Corp in order to submerge themselves into larger markets with supply chains that can catapult their business to the next level. In the Amazon era where cheaper competitive prices exist, and 2 day prime shipping is paradise, it's interesting to see that the traditional and conventional retail operations source still remains a great dealof profit still.

3. DOES UBER FREIGHT HAVE WHAT IT TAKES?

Uber Freight, an on-demand freight service for trucking carriers is faced with raised eyebrows as many question its ability to really promote business. The app is intended to connect truck drivers to cargo that must be located long distances. Though its intentions to cut out the time-consuming phone calls, trail of communication, and the anxiety of confirming loadsdown to one touch of a button sounds nice, many skeptics just aren't sold. A consensus of hesitation, suggests that Uber Freight will lack the necessary personal communication that is needed to maintain good business practices with efficiency and thoroughness. Many have questioned:What about regulations and security like TSA or CPTAT? How do we really know who is handling our freight? Are the drivers certified? Should we trust anonymous drivers to haul freight worth thousands of dollars without a company backing? This oversimplification of what it means to transport cargo leaves many with an uneasiness as they await answers to these questions.

4. ARE DRONES TAKING JOBS?

Everyone loves a good two-day free shipping order, but at what cost? Meeting with the market's high demand and customer's desire for immediacy, it seems that machines might be cutting out the middle man. Not too long ago,Amazon introduced Prime Air which would send drones to deliver goods to houses,and now JD.com the online Chinese retailer is following suit. With its potential to cut delivery costs and timesto transport services to cities and reach millions of customers outside of China's major cities. It's potential is rather intriguing, but many confounding variables leave people not entirely convinced that the technology is sound enough to replace workers.